privatization

Kevin Rosseel / morguefile

Sex with inmates - maggots in the food - smuggling drugs to inmates - undercooked or spoiled food.

When is enough "enough" with Aramark, the food service company hired seven months ago to feed inmates in Michigan prisons?

The privatization was supposed to save the state more than $12 million a year. But it's been a Pandora's box of troubles for state prison officials ever since Aramark took over last December.

Paul Egan of the Detroit Free Press Lansing Bureau joined us today. He has reported on all the problems associated with the Aramark contract. Egan said that so far, things are not getting any better.

I’d like to start the week with a thought that some will consider heresy: sometimes, privatization just doesn’t work.

There are some functions and responsibilities that government handles better.

American is gung-ho for privatization these days, both to save money, and because government at all levels has become something we love to hate. Thanks to years of being told that government is bad, corrupt, expensive and inefficient, we are happy to reduce its size.

Well, we may not be quite ready to hand the nuclear arsenal over to an assets management firm, but apart from that, anything goes. And frankly, there are some things that probably should be privatized.

Garbage collection, for example.

But Michigan decided last year to privatize food service in our prisons, and so far, it has been a highly embarrassing failure.

The Detroit Free Press used the state Freedom of Information Act to find out what’s happened since the state contracted with a private food services company, Aramark Correctional Services of Pennsylvania.

Detroit is following through on its effort to privatize garbage collection.

Starting next week, a private contractor will pick up the trash for some Detroit households on the city’s east and southwest sides. Another company will start serving the rest of the city early next month.

Gary Brown, Detroit emergency manager Kevyn Orr’s chief operating officer, says the new system will offer more services at roughly the same cost.

Steven Depolo / Creative Commons

Two in every three Michigan public school districts contract out at least one major service, like custodial, transportation or food service. That’s according to a yearly survey of districts.

The Midland-based research institute Mackinac Center for Public Policy, which supports privatizing services, has published the survey every year since 2003. Here’s a summary of the center’s survey:

Lindsey Smith / Michigan Radio

Update 4p.m.

The home’s administrator Sara Dunne says the U.S. Department of Veteran’s Affairs just completed an annual inspection of the home in April. “They will not leave the homes if they feel there’s sub-standard being provided,” Dunne said.

There is no abuse and neglect going on at the home,” Dunne said, “There’s very strong language of what abuse and neglect is in long term care and there have been no instances of that at all.”

Simon Brass / Flickr

Michigan will not privatize nearly $350 million in prisoner health care and food costs, keeping intact nearly 1,700 state workers' jobs.

State Department of Corrections spokesman Russ Marlan told The Associated Press on Friday that none of three contracts out for bid would have achieved the necessary 5 percent savings as required by state rules.

Bidding out more of the prison health system could have been the largest privatization of state government services in Michigan history.

Photo courtesy of Birminghan Public Schools

The Detroit City Council has delayed voting on a contract to restructure the city’s water department.

Detroit’s board of water commissioners and Mayor Dave Bing have already approved a plan to contract Minneapolis-based EMA Consulting.

That firm plans to cut up to 80% of the water department’s workforce, and create “efficiencies” by privatizing many so-called “non-core” functions.

But after hearing public concern and anger about the plan, the Council decided to postpone a vote on the $48 million EMA contract.

In part, that’s because the Environmental Protection Agency asked the city not to take action before it can review the plan.

Councilman Ken Cockrel Junior says he want to hear from the EPA before moving ahead.

“The EPA has said they want 45 days to review that contract, and make sure there are no negative impacts,” Cockrel said. “I think when you have a federal agency that is charged with monitoring environmental quality for our country, and they say they need to look at this…I think we need to give them the time to do it.”

Detroit’s water department has been under a federal judge’s oversight since 1977, for periodic failures to comply with the Clean Water Act.

Michigan.gov

Governor Rick Snyder’s plan to save money by privatizing nursing assistants at a state-run home for veterans is legal. The state’s Court of Appeals issued the decision Friday.

The Grand Rapids Home for Veterans is one of two state-run hospitals for vets in Michigan. More than 700 are housed there.

Governor Rick Snyder privatized about 170 nursing assistants at the home last year to save around $4 million.

Reporters were caught off base yesterday when they learned that Governor Rick Snyder was not in Lansing as they thought, but in Afghanistan, visiting the troops. The secrecy was understandably needed for security reasons, and the trip is the sort of morale-boosting thing that governors and other state officials traditionally do.

But it was very telling when the governor reported on what the soldiers wanted to talk about. Besides the surging Detroit Tigers and fading Red Wings, the chief thing on their minds seemed to be jobs.

Chicago 2016 photos / Creative Commons

A Kent County judge has ruled that taxpayers cannot sue school districts and teachers’ unions who agreed not to privatize any employees. The taxpayers say the schools and unions entered an illegal employment contract when the districts agreed not to privatize any employees in exchange for concessions in pay and health benefits. The Mackinac Center for Public Policy’s new Legal Foundation represented the taxpayers in the case.

The judge didn’t disagree with the Mackinac Center, but ruled only the parties in the contract – the unions or the school districts – had standing to file suit. And state law dictates the Michigan Employment Relations Commission must hear any unfair labor practice claims.

The Mackinac Center’s for Public Policy’s Legal Foundation is filing a lawsuit against 10 Kent County school districts and their teachers’ union.

The suit is to be filed Wednesday on behalf of five taxpayers living near Grand Rapids. It claims the school districts are breaking state law by approving a contract that agrees not to privatize any services during the one-year agreement.

Patrick Wright directs the foundation. He says they want to make sure privatization remains a viable option for school districts across the state.